Hello ozzyboy18 and welcome to the trust deed forum.

A remortgage or a secured loan may well be impossible. It's a long time since we heard from anyone that could manage this to release equity for their trust deed because the lending market is so tight.

Your parents might look to an equity release mortgage (of the type that older persons can use to untie cash from their homes) if they wanted to assist you.

Extending a trust deed for a reasonable period of time may be an option. What's reasonable? That's down to the opinion of your trustee, but we've often seen two years being written as a guideline on this forum.

I guess that type of extension might help you with the home that you live in. However, unless you are paying a very sizeable sum into your trust deed each month, it may not be viable option for your other home where there is a lot more equity.

I know you dont want to but surely selling the 2nd property is clearly the best option.

Paul

Hi Guys
Thanks for the prompt replies
TDA, I could pay £1000 into the trust deed, so it would take 36 months to pay off, do you think they would accept this??
Plasticdaft, the problem I got is that an elderly friend of the family rents the 2nd property from me, all I get is the housing benefit as she is also on this, and of course if I sold the property it would leave her homeless. I know this is not a time for sentiment but I would rather avoid that.
Lyn

They may well accept £1000pm over around 3 yrs, ozzyboy18. It doesn't seem unreasonably long to me - especially when you consider that an IVA down South would I believe normally run for a total of 7 years in these circumstances.

They just got back to me, they have sent my details to a broker!!!
And they have recommended £1250 over 24 Months. £1000 is my definete maximum, Ive emailed them back asking this would be acceptable.
We will see!!
Stressed.com lol
Lyn

Hi ozzyboy18.

£1000 per month is certainly a very significant amount. Hopefully some flexibility will be shown to you given the circumstances.

Hi ozzyboy18,

I would agree that £1,000 per month is a significant amount and would be surprised if they were not to agree to this.

We recently ran a training session for money advisors and the solicitor that we had attend to give a presentation stressed the importance of always considering an offer rather than trying to sell a property and being tied up in litigation. He spoke of cases that he had been tied up in court with for years and spoke of fees of £10,000 to £15,000.

If your offer of £1,000 is rejected I would suggest asking for a meeting with the Trustee. You may be able to persuade him to accept the offer in person as you will be able to advise him of your circumstances and why it would be difficult to sell the property. This may not have been relayed to him by your case manager.

Thanks for all the advice guys, I think the £1000 is not unreasonable and hope they will come back to me in due course.

Good luck ozzyboy.

Paul

Thanks Plastic

For lots of reasons, I would ask parents to consider equity release as a LAST option. There are many companies operating sharp practices and contracting terms which are onerous and binding.

Perhaps, If your £1000 offer is not able to be accepted, ask your parents to look at a commercially available mortgage or secured loan where you would pay them the £1000 per month, settling in full if the tenancy ends and you manage a sale to do so before you've made all agreed payments to them.

There are lenders who offer lending up till the 90th year of the older borrower (if it's a joint application)

Income will be a factor but there are options.

Speak to a broker who is CURRENTLY very active in mortgage applications and can talk you / your parents through which lenders are worth approaching.

Wise words RBSB. Let's hope this all turns out to be academic and the offer on the table is accepted.

I'd be pretty cautious about that.

An unwelcome change of circumstances could leave the parents homeless if the mortgage gets behind.

As Kevin says, hopefully it won't be needed. One difficulty is the lending climate we have for the foreseeable future. It is a lot more difficult now to sell a property with a tenant in occupation due to the lender requirement for vacant occupation if the buyer is using mortgage finance. So, a cash buyer has to be found and normally that means a 'cash price' is paid. Lending on the property is likely to be nigh on impossible whilst in the trust deed.

there are 'Options' literally!

If a buyer takes an 'Option' to buy at x price at a later date, there is a sum paid for the potential to purchase from the owner. I don't see in ozzyboy18's post what the actual value is of the 2nd, let property which would greatly impact on the use of / value paid for an option to buy.

Personally, I would avoid borrowing via parents to prevent them being affected by any unwelcome change in my circumstances as TDA cautions. Having said that, for me it would still be a better option than guiding them towards equity release.